Strong EBITDA multiples of crypto-exchanges

The digital asset sector could take a long time to recover back to November 2017 numbers. Yet with millions of active users, an international market, and strategic investors on board, three companies have become the big three cryptocurrency exchanges in the global market, reporting strong multiples.

Source: BQ Intel crypto-exchange benchmark, Bloomberg, Kraken, Coinbase


Kraken

Based in San Francisco, Kraken is the world’s largest global bitcoin exchange in euro volume and liquidity. Kraken’s clients also trade US dollars, Canadian dollars, British pounds, Japanese yen and other digital currencies.


On February 4th, Kraken announced that it acquired Crypto Derivatives Trading Platform and Index Provider, Crypto Facilities, in Nine-figure Deal, its largest acquisition to date and one of the largest the industry has seen.


The company is reportedly raising USD 10 million by selling 0.255% stake in the company to their customers, which would put the valuation of the company at almost USD 4 billion.

CoinBase

Coinbase is a San Francisco-based digital currency wallet and platform where merchants and consumers can transact with new digital currencies like bitcoin, ethereum, and litecoin.


In october 2018, the company secured USD 300 million in a series E funding round with notorious investors like Y Combinator and Andreessen Horowitz, bringing its valuation at USD 8 billion.


Binance

Binance is a global crypto-assets exchange with a platform trading more than 100 cryptocurrencies. It is considered as the biggest crypto-assets exchange in the world by trading volumes.


In Q2 2019 the Binance Coin, which can be considered a proxy for the company’s valuation, reached a market capitalization of USD 5 billion. Check the full version of Blockchain Quarterly (Q1 2019) report for more Insights.

© 2020 bqintel.com

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